Technical & Fundamental Oil Reports Specialists

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Watch the 5-day MAs. The 8s are a sell.

Published Friday, August 7th, 2015

Introduction. Brent and RBOB hit their targets lower, to 48.90 and 163.49, yesterday and both closed above them. Heat and Gasoil are both poking their noses over the 5 day MA this morning, around 154.38 and 471.50. The contracts are all, in one form or another, moving close to the 5 day MAs, around 45.11 WTI; 49.67 Brent; 154.38 Heat; 166.61 RBOB; and 471.50 Gasoil. The 5s are very good indicators of momentum and impetus. Moves confirmed by closes (m/c) over them puts the tried and tested “slingshot theory” into play, namely that the contracts then head for the 8 day MAs. With Heat and Gasoil just over and trying to recover a bit it’s time to be a bit careful. If these two contracts can hold over there 5s – at best a 50/50 chance – then we may well be in for a test of the 8 day MAs. The trend is till down – sell a rally to the 8s, but protect shorts on a m/c over. WTI still has a target to 43.58, valid whilst below the 5 day around 45.11. Run shorts whilst below 45.11, but expect the 5 to come under pressure. The 8 is around 46.25 and is a sell.

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Posted by Robin Bieber